Banks and insurers around the world are likely to face climate-related stress tests in the next two to three years as supervisors become more aware of the urgency of climate change risk. The forthcoming UK — and potentially US — climate-change stress tests will not test capital adequacy, but may lead companies to look more closely at whether they need to hold more capital to cover potential losses from climate-change risks.

 

This roundtable will bring together industry leaders to discuss what financial institutions can expect from these tests, the impact of climate-related risk on credit, market, business and reputational risks, and the adoption of longer-term strategies to improve the sustainability of banks’ business models and improve risk management practices.

 

BAB’s Corporate Citizenship & Sustainability Series is a bespoke series of roundtables and business briefings covering critical Environmental, Societal and Governance (ESG) issues in business and private sector-led initiatives in support of COP26, the UN Framework Convention on Climate Change and the UN Sustainable Development Goals (SDGs). This series provides a platform to stimulate debate and conversation amongst business leaders, relevant policy makers and stakeholders to advance the guiding principles of  COP26 for the U.S.-UK transatlantic corridor.